Central Bank governor Eiríkur Gudnason announced his resignation as of June 1 in a letter received by Prime Minister Jóhanna Sigurdardóttir on Tuesday. The PM has expressed her disappointment with the announcement.
Sigurdardóttir requested the immediate resignation of all three Central Bank governors. “Now it is clear that two governors will not comply with that request and that is naturally immensely disappointing.” Fréttabladid reports.
Prime Minister Jóhanna Sigurdardóttir. Photo by Geir Ólafsson.
The PM informed Gudnason and the other two Central Bankers, Ingimundur Fridriksson and Davíd Oddsson, of her wishes in a letter sent last week. Fridriksson complied with her request and left his post on February 9, Gudnason first refused and then changed his mind, now planning to resign this summer, and Oddsson refused to resign.
Sigurdardóttir said Gudnason must be aware that he will never have a seat on the Central Bank board of governors until June.
The Althingi parliament is currently discussing a bill on amendments to the laws applying to the bank’s senior management and once that bill has been passed, the governors will automatically be suspended.
“I trust the parliament will work on this matter as quickly as possible,” the PM said.
Yesterday, Gudnason released a statement explaining his attitude. By resigning as of June 1 he had wanted to help the PM achieve her goal of causing as little disturbance to the operations of the Central Bank as possible, Morgunbladid reports.
Gudnason also mentioned four important matters concerning the Central Bank’s project of reconstructing the country’s financial system, on which the bank must continue to work without delay.
These matters include the government’s economic program in cooperation with the International Monetary Fund (IMF), the policy rate, foreign currencies and the exchange rate of the Icelandic króna and re-launching the operations of the banks that were nationalized.
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